Page 167 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : SOLIZE INDIA TECHNOLOGIES PVT. LTD. 413
space, Railways, Heavy equipment, Machinery, etc. The functionali-
ty of Software (i.e. input to the Software and output from the Soft-
ware) remains unchanged irrespective of the type of customers (Au-
tomotive, Defence, Aerospace etc.) using the same. In other words
the software supplied by use could be used by the customers in dif-
ferent fields depending on their requirement. In short, it is a pack-
age software and not tailor made one, to suit individual require-
ment.
(d) The applicant states that their customer base is mainly Government
Departments, public funded research institutions and public sector
undertakings viz. HAL, VSSC, BHEL, BEML, DRDL, VRDE,
CVRDE, IITs at various locations, ADA and NAL, etc.
5. The applicant states that the reasons for seeking Advance Ruling are
as under :-
(a) By virtue of Notification No. 45/2017-Central Tax (Rate) and Notifi-
cation No. 47/2017-Integrated Tax (Rate) both dated 14th Novem-
ber, 2017, concessional rate of 2.5% CGST and 2.5% SGST or 5%
IGST, subject to conditions mentioned in the said notifications, on
goods listed in the said notification (including “computer soft-
ware”) was stipulated.
(b) In the said notifications, “Computer Software” was termed as
Goods, for the purpose of applicability of concessional rate of GST.
However, either CGST Act or SGST Act or IGST Act of 2017 did not
define “Computer Software” used in the said notification. Hence
ambiguity prevailed in the industry.
(c) In the absence of any definition provided under the law, the Gov-
ernment agencies/public sector undertakings and public funded re-
search institutions are claiming benefit of above notifications, since
the software supplied by the applicant is used with computers, thus
deeming it as “computer software”.
(d) The applicant states that by using the software supplied by the ap-
plicant, the end-customer could achieve desired results in their field
of operations. It is reiterated that the software supplied by the ap-
plicant could be equally used by various customers depending on
their requirement.
6. Regarding the applicant’s interpretation of law, the applicant states
as under :
(a) “Computer Software” is not defined in GST Law. The software pro-
vided by the applicant is not tailor made but similar to packaged
(canned) software as defined in the case of M/s. Tata Consultancy
Services v. State of Andhra Pradesh. In the said case the Honourable
Apex Court held that Canned (Packaged) Software is termed as
“Goods” to attract sales tax levy. In para 24 of the decision [2004
(178) E.L.T. 22 (S.C.)], the Honourable Apex Court has held that :-
“24. A “goods” mag be a tangible property or an intangible one. It
would become goods provided it has the attributes thereof having
regard to (a) utility (b) capable of being bought and sold (c) capable
of transmitted, transferred, delivered, stored and possessed. If a
software whether customized or non-customised satisfies these at-
tributes, the same would be goods.”
GST LAW TIMES  21st May 2020  167